Laura earns a base salary of $50,000 as an event planner and is subject to the following hypothetical income tax bracket.Laura is considering taking on an additional wedding that will increase her income by $5,000. In order for Laura to deemthe wedding worth her time, it must earn her $3,000 after taxes. Please round all answers to two decimal places.IncomeTax rate$0-$10,0005%$10,001-$30,00010%20%$30,001-$50,000$50,001+50%What is the marginal tax rate associated with taking on this wedding?50What is Laura's average tax rate if the extra wedding is accepted?0.1636

1) Marginal tax rate = 50%Laura was earning a basic salary of $50,000 as an event planner and when…

Answered: Laura earns a base salary of $50,000 as…

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter12: Income Distribution, Poverty, And Discrimination

Section: Chapter Questions

Problem 10SQP

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Laura earns a base salary of $50,000 as an event planner and is subject to the following hypothetical income ta is considering taking on an additional wedding that will increase her income by $5,000. In order for Laura to c worth her time, it must earn her $3,000 after taxes. Please round all answers to two decimal places. What is the marginal tax rate associated with taking on this wedding? Marginal tax rate: Income $0-$10,000 $10,001-$30,000 $30,001-$50,000 $50,001+ Average tax rate: 4 What is Laura's average tax rate if the extra wedding is accepted? ves R Given the information, will Laura undertake this extra wedding? 5 7 Tax rate 5% 10% 20% 50% B T 6 % 45 % 8 9

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